A DAMNING Westminster report today slated the "disastrous"performance record of Arriva Trains Northern.

The influential Transport Select Committee criticised the train operator for failing to invest in new rolling stock, worsening delays and cancellations and replacing trains with buses.

It axed 1,000 services a week last summer, according to the committee's latest report. Thousands of passengers were left stranded on platforms.

Yet the firm received £185 million of taxpayers' money after promising to improve services.

The report on the rail franchising process is a fresh blow to the company, which is plagued by a bitter industrial dispute with the RMT union.

It was controversially awarded a two-year franchise extension by the Strategic Rail Authority last year.

The committee said: "Arriva

received substantial additional funding on the understanding that there would be a marked improvement in performance.

"Unfortunately, there has been no investment in new rolling stock and performance has deteriorated, leading to staff recruitment and training problems.

"Disruption to services has been extensive, with the cancellation of approximately 1,000 trains a week between May and September 2001.

"Passengers have suffered considerable inconvenience as a consequence."

Julian Evans, Arriva Trains Northern's director of corporate

communications, said: "The problem that we have experienced are essentially inherited problems.

"When we were awarded the franchise it was under-funded, under-resourced and understaffed.

"One of our major difficulties was tackling the problems created by the previous owners, who reduced the number of train drivers and also the training of drivers.

"We have since launched one of the biggest recruitment campaigns that the industry has ever known."

The select committee criticised the Government's decision to award short-term extensions to train operators in future.

Between April and October last year, one in four Arriva Trains Northern services arrived at stations late.

The company, which took over in February, 2000, from Northern Spirit, the train operator owned by MTL Trust Holdings, faces a £2 million fine from the

Strategic Rail Authority for its poor performance.

However, a spokesman for the SRA, which is overseen by the Government, said: "We are not looking to remove the franchise from Arriva Trains Northern."

The second half of the committee's report dealt with the Government's decision to place Railtrack into administration.

The committee believed the decision was, "on balance", correct.

Arriva bosses hope to go to arbitration in a last-gasp effort to stop strike action next week by conductors.

Talks in York broke down again yesterday without agreement amid claims that Arriva was demanding cuts to workers' conditions to fund a pay rise.

The RMT believes that two days of strike action on February 5 and 6 are now inevitable.

Updated: 11:25 Thursday, January 31, 2002